Area Acme markets are sold

Supervalu Inc. on Thursday said it reached a deal to sell five of its biggest grocery chains, including East Whiteland-based Acme, for $100 million in cash and $3.0 billion in debt.

AB Acquisition, an investor group led by Cerberus Capital Management of New York City, will buy 877 stores. Cerberus will also offer to buy up to 30 percent of the remaining Supervalu company for $4 per share after the deal closes.

Acme operates 67 stores, including eight in Chester County and one in nearby Glen Mills.

In addition to Acme, Supervalu is selling Albertson’s, Jewel-Osco, Shaw’s and Star Market.

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Supervalue said it will keep Sav-A-Lot, which has 35 stores in the region, and five other supermarket chains.

Supervalu has struggled for years to turn around its business.

The broader supermarket industry has been facing growing competition from big-box retailers such as Target, drug store chains and even dollar stores. While bigger chains such as Kroger Co. have adapted by tweaking store formats and building customer loyalty through discount programs and improved offerings, Supervalu has scrambled to keep pace.

This summer, Supervalu fired its CEO and tapped Chairman Wayne Sales to lead a turnaround. The company said at the time that it was reviewing its options, such as putting itself up for sale.

Following the closing of the deal, Supervalu will consist of a food wholesaler, Save-A-Lot, and regional chains Cub, Farm Fresh, Shoppers, Shop ‘n Save and Hornbacher’s. The company, based in Eden Prairie, Minn., is expected to generate annual revenue of more than $17 billion, down from $35 billion. Supervalu said it will continue to work on cutting costs and fixing its business.